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Research Outline

Prepared for Meir B. | Delivered July 26, 2019

Arizona Electricity Price Increases

Goals

To understand electricity price increases over the years by electric companies in Arizona in order to facilitate a pitch that solar power is cheaper in the long term.

Early Findings

  • APS increased the electricity rate of some residents of Arizona by as much as 55% to 88% within one year, even though energy use increase was only 7%.
  • There was also a report in 2018 that APS price hike was three times more than what customers were told.
  • Energy prices have increased by an average of 4% annually in the last 10 years in the US.
  • The average monthly electricity bill in the US is $110 and it is expected to reach $180 in the next 20 years.
  • Average electricity prices in Arizona has increased dramatically between 2008 and 2018, compared to the national average.
  • Electricity prices increased by almost 30% between 2008 and 2018 in Arizona, one of the highest in the US.
  • The electricity price increase in Arizona between 2013 and 2018 is about 15%.
  • Electrical District 3 decreased electricity rates by 5.16% between 2015 and 2016 and decreased the rate further by 3.16% between 2016 and 2017.
  • SRP decreased electricity rates in 2019 by between $1 and $4.
  • TEP increased electricity bill by an average of $7.16 between 2018 and 2019.
  • However, TEP states that over the last 20 years, they have only increased residential electric rates by an average of about 1% per year.